The growing importance of digital channels for customer acquisition and the rising costs of digital mean that it’s a more competitive landscape online that ever before. Businesses can respond by working more smartly with the data they collect and embrace new techniques for optimising their performance marketing activity. The biggest killer of profit is bad budgeting – either spending too little or too much.
Accurately predicting the future performance of marketing activity is now possible thanks to the use of advanced statistical techniques called predictive analytics. Statistical modelling and the understanding of customer buying triggers can lead to highly accurate predictions of where and when to spend marketing budget for the greatest return.
One tool available to business and marketers is called Forecaster. This is a ground breaking performance marketing platform that uses advanced statistical models and real time inputs such as weather, TV, stock and seasonality to provide highly accurate forecasts and optimisation for digital marketing channels such as PPC, PLA and display.
Argos case study
Argos is the UK’s largest high street retailer online with over 50,000 products for sale and 750 stores throughout the country. In 2014 it delivered 128 million customer transactions and over 738 million visits to its website. Argos works with Summit to deliver search marketing and has been using Forecaster for the last 18 months. The results have been transformational with revenues from search up by over 50% and improvement in margins by up to 900%. Argos uses Forecaster to forecast, plan and optimise their digital activity across PPC, PLA and display, linked in real time to buying triggers such as weather, TV and seasonality.
“Forecaster’s had a great impact on our business. It’s allowed us to be even more competitive in a challenging market particularly when it’s come to understanding where to place our investments.” – Mark Steel, Head of Digital Operations, Argos